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Western energy companies have started pulling out of the Sakhalin-1 and Sakhalin-2 (pictured) oil and gas projects in Russia's Far East. Japan's international reputation could be on the line if it does not follow suit.   © Sakhalin Energy/Jiji
The Big Story

Walking a tightrope: Ukraine war puts Japan's energy security on thin ice

As Western sanctions on Russia pile up, Tokyo weighs pulling out of Sakhalin projects

RURIKA IMAHASHI, Nikkei staff writer | Japan

TOKYO -- Sakhalin-2, an oil and gas project in Russia's Far East, was once an expression of faith in Russia's global future. Launched at the beginning of the century, it was then the largest foreign investment deal in the Russian Federation, uniting global oil majors and Japanese conglomerates like Shell and Mitsui & Co. They brought the latest technology to what was one of the world's greatest oil and gas development challenges. On the barren volcanic island of Sakhalin, 40 km from Japan's northern coast, the project combined offshore oil platforms with Russia's first liquefied natural gas plant.

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